Search

CALGARY, Alberta, Jan. 1, 2013 /CNW/ - Direct Energy Regulated Services has announced default natural gas rates for January 2013. These rates will apply to customers who have not chosen a competitive supplier within the ATCO Gas North and South service territories. The rates have been verified by the Alberta Utilities Commission.

North Service TerritoryThe North territory includes customers living in and north of the City of Red Deer.

For customers in the ATCO Gas North service territory, the January regulated natural gas rate is decreasing from the December rate of $3.582 per GJ to $2.815 per GJ.

This rate reflects a market price for January supplies of approximately $2.948 per GJ as reported by the NGX, and incorporates an adjustment of ($0.133) per GJ for December and prior months.

The typical residential gas bill for January based on an average 20 GJ of consumption would be approximately $135 in the North.

South Service TerritoryThe South territory includes customers living south of the City of Red Deer.

For customers in the ATCO Gas South service territory, the January regulated natural gas rate is decreasing from the December rate of $3.542 per GJ to $2.917 per GJ.

This rate reflects a market price for December supplies of approximately $2.948 per GJ as reported by the NGX, and incorporates an adjustment of ($0.031) per GJ for December and prior months.

The typical residential gas bill for January based on an average 20 GJ of consumption would be approximately $113 in the South.

Further information on regulated gas supply and a complete list of competitive retailers can be found on the Alberta government's customer choice website at: www.ucahelps.gov.ab.ca.

Backgrounder

In the North Service Territory, how will a typical bill this month compare to previous months based on 20 GJs?

January 2013, a typical residential bill will be $135

January 2012, a typical residential bill was $141

December 2012 (based on 18 GJ), a typical residential bill was $141

In the South Service Territory, how will a typical bill this month compare to previous months based on 20 GJs?

January 2013, a typical residential bill will be $113

January 2012, a typical residential bill was $128

December 2012 (based on 18 GJ), a typical residential bill was $118

How does this month's market price compare to last month?

The regulated rate is based in part on the current market view of natural gas prices for the month, as reported by NGX:

As of the time the rate application was filed, the market price for January was $2.948 per GJ.

The market price last month at the time of filing was $3.318 per GJ.

Last month's actual market price was approximately $3.170 per GJ.

Why are there adjustments this month?The formula used to calculate the regulated rate accounts for any over-or under-recoveries of actual gas costs arising from differences in:

normal and actual weather, which affects the volume of natural gas consumed; and

forecast and actual market prices occurring in January and prior months.

Why do natural gas prices fluctuate?Natural gas prices are set in an open and competitive market, and are influenced by many variables throughout North America and the world. These variables include supply and demand, production and exploration levels, storage injections and withdrawals, continental weather patterns, pricing and availability of competing energy sources, and market analysts' views of future trends in any of these or other variables. Natural gas prices in Alberta are not typically a function of localized weather.

Why are North and South regulated natural gas rates different?DERS is required by the Alberta Utilities Commission to purchase natural gas for ATCO Gas' North and South systems separately. Each system has slightly different load, weather, and supply characteristics that result in a different mix of Monthly and Daily Index purchases.